If you have reached this article, you may be considering making a reunification of debts with your mortgage and solving economic problems. It is possible that other personal loans have been added to the usual installment of your mortgage loan and the situation at the end of the month has gotten out of hand.
A holiday, the orthodontics of the little ones or the reform of the kitchen. Surely someone has told you that reunifying debts is the perfect solution to improve the financing of your current problems. However, before making a rash decision, there are a number of factors that you should assess to extend your mortgage.
I need money! Most of your thoughts right now boil down to this idea
Before trying to get fast money without thinking about its origin, you should know the advantages and disadvantages of fast loans and if there are other ways to deal with this situation without having to be “crushed” by the current debt.
The best mortgage loan is the one you pay without allocating more than 40% of your monthly income
In the following article we will explain everything you need to know about the reunification of debts with a mortgage and we will establish the guidelines that you should take into account when deciding between paying off your mortgage or requesting a new loan.
When the situation is adverse and hope is low, drastic determinations are not always the safest .
Debt reunification with mortgage How did I get here?
To know if it is convenient for you to make a reunification of debts with a mortgage , it is essential that you wonder how you got here. If the income of the family nucleus has decreased considerably in recent months, debt reunification is a good option to improve your financial position
The reunification of debts with mortgage is nothing more than the negotiation of a new mortgage loan with a financial entity. If you are collecting an unemployment income it will not be taken into account when negotiating with the bank.
The bank analyzes the risk that it produces to its entity to proceed to a reunification of debts with mortgage, and in case it is not profitable after its analysis, this will not be granted to you. Therefore, you must have some kind of income to deal with this “new mortgage payment”.
Before deciding to request a reunification of mortgage debts, you should know that it is completely customary to have more than five outstanding loans (No, you are not the only one that is happening to you at the moment).
Having debts is not synonymous with being a delinquent person or being irresponsible in the face of our financial situation.
In spite of the very negative connotations of the word “Debt”, the reality is that it is necessary to be able to acquire a car, your house or to face the daily activities of your day to day. Why else would credit cards exist? His own name indicates
If we could not contract debts, the progress of society would be slowed down, and there would be no branch of the legal system in charge of regulating it known as Banking Law. You may have requested a loan at a time in your life that has now changed, and that doesn’t have to be a problem.
Taking action on the matter and adapting to the new situation is always the best option.
Debt reunification with mortgage What debts allow a mortgage review by our bank?
When requesting a reunification of debts with a mortgage , we must consider what kind of expenses we should proceed to group debts and which we must cover by requesting a quick loan.
For example, some banks require that we have to group all our debts under the same mortgage credit to grant us the reunification of the same.
Another of the most common requirements is that the amount of the new mortgage never exceeds 80% of the value of the mortgaged asset. This increases the entity’s guarantees to recover the amount due.
On the other hand, the reunification of debts with mortgage does not make sense if what we pay of debts is much lower than the monthly mortgage payment. In addition, some banks that collect debts require requirements such as not being on any list of delinquents or presenting a guarantor to support the operation.
What expenses entails a reunification of debts with mortgage?
Beyond the interest we will have to pay on the amount owed to the bank, a mortgage debt reunification operation entails a series of expenses that we must know before starting the whole process.
Credit Cancellation Expenses
When we request the reunification of debts with mortgage, we are canceling the credits that we had pending to generate a new one. The cancellation of a credit does not always refer to the termination of a contract with a bank, it may be the partial suspension of the same.
We must also distinguish between the term early maturity (when there is an early cancellation for non-compliance of any of the parties), or when it is made by mutual agreement . The cost of these expenses is what is known as early amortization.
In case of having several consumer loans, these are regulated by Law 16/2011, of June 24, on consumer credit agreements.
Based on current legislation, depreciation cannot exceed 0.50% for the first five years and 0.25% for subsequent years
Expenses for renegotiating the mortgage loan
The reunification of loans involves formalizing a new mortgage , which carries a series of expenses such as the commission of appeal, the costs of appraisal of the property or the tax of Documented Legal Acts, in addition to the fees we pay to the notary.
The importance of having specialized help in the process of reunification of debts with mortgage
Would you go to a legal process (a trial) without first asking a lawyer? No. It is important that you keep in mind that the bank will only look for its own interest. After all, banks are nothing more than private companies.
To start the paperwork, we must have the approval of the bank. Therefore, it is important to have an intermediary who knows the specialties of each financial institution and explains how the entire process is going to be carried out.
The negotiating agencies carry out a study of your case and will offer you a series of solutions to improve your chances in order to achieve the reunification of mortgage debts.
It is important not to confuse them with private lenders, who give much higher interests. The negotiating agencies will help you improve your image in front of your bank and will guide you with your specialized help throughout the mortgage debt reunification process.
We hope this post has helped you to better understand the process of reunification of mortgage debts and the aspects related to it. If you live in the Community of Madrid , contact us and we will analyze your particular case.